Sequence effects in service bundles: Implications for service design and scheduling

Researchers in several academic disciplines have investigated the effect of the sequence of pleasure and pain on the customer in service, experience, or healthcare-related interactions. Specifically, past research from psychology, behavioral economics, and other related fields suggests that the sequence effect can significantly impact a customer’s overall impression of a service interaction. In this article, we test the influence that the sequence of discrete events separated by several days or weeks plays on customers ’ assessment of service bundles. If the relative importance of the sequence effect for discrete bundles is known, then a service designer and event scheduler can optimize and develop a better sequence of interactions for the customers, leading to higher satisfaction, loyalty, and repurchase. Using an extensive multi-year ticket purchase database from a world-renowned performing arts venue, we develop and test econometric models to predict season ticket subscription repurchase. The estimated models show that sequence effects do indeed play a significant role in determining customer repurchase of subscriptions. These results have important implications for effective service design and capacity planning for a wide range of service industries. This article suggests bot